What is Builder's Warranty Insurance?
Builder's warranty insurance (also called Home Warranty Insurance or Domestic Building Insurance, depending on state) protects homeowners if a licensed builder dies, disappears or becomes insolvent before completing the work — or fails to rectify defects.
Why it matters for you
Required by law for most building contracts over $16,000–$20,000 (threshold varies by state). Your builder arranges the policy before work begins. Lenders require evidence before releasing construction drawdowns.
Last updated: April 2026